BANKS AND BANKING - RIGHT TO RECOVER FOR BENEFITS CONFERRED UNDER AN ILLEGAL CONTRACT

Authors

Abstract

The Rowena State Bank, a corporation organized under the laws of South Dakota, borrowed a sum of money from the plaintiff who was the president of the bank. A state statute provided : "In all cases where money is borrowed, a bank shall issue its 'Bills Payable' and shall show the true amount of borrowed money on its books." The bank failed to comply with this statute. A short time later the defendant as superintendent of banks took charge of this bank. The plaintiff brought an action to recover upon a quantum meruit for the money loaned. Held, that there could be no recovery. illegality of contract arising from express prohibition of the statute renders the contract wholly void for any purpose, and a recovery in quasi-contract would frustrate the legislative purpose. Jacobson v. Ruden, (S. D. 1932) 24:4 N. W. 363.

Recommended Citation

BANKS AND BANKING - RIGHT TO RECOVER FOR BENEFITS CONFERRED UNDER AN ILLEGAL CONTRACT, 31 Mich. L. Rev. 719 (1933).
Available at: https://repository.law.umich.edu/mlr/vol31/iss5/11